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This article provides an important update regarding options positions where the underlying stock is now traded on an Over-the-Counter (OTC) market. Due to this change, our liquidity providers do not permit the opening of new positions in OTC stocks. Consequently, it will not be possible to settle the underlying stock resulting from the option, making it necessary to close those options positions that clients have currently. |
Why do I need to close my options position?
The underlying stock to your option is now being traded on an Over-The-Counter (OTC) market. Due to this change, our liquidity providers do not permit the opening of new positions in OTC stocks. Consequently, it is not possible to settle the underlying stock that could result from the option, making it necessary to close your current options position.
Stocks that trade OTC do not meet the requirements to be listed on a national exchange and generally have less liquidity, lower trading volumes, larger spreads and less information publicly available. Therefore, options on OTC stocks are generally not supported at Saxo.
What is the deadline to close my options position?
Saxo will inform you of the deadline to close the option position yourself. Typically, you will have 5 business days to act. If you fail to act within this timeframe, Saxo will proceed to close the position on your behalf.
Are there any exceptions?
There can be exceptions as the OTC market covers a wide array of different companies and our liquidity provider(s) may support some positions. Please refer to the tradable status of the underlying stock on the Platform. If the underlying stock is reduce-only, then the option position will need to be closed.
Why are new positions in OTC stocks not permitted?
Our liquidity provider(s) do not permit the opening of new positions in OTC stocks, which is why it is necessary to close your current options position.
Will this affect other options positions I hold with Saxo?
This change specifically affects options positions where the underlying stock is now traded on an OTC market. If you have other options positions with different underlying stocks, they are not affected by this change.
What should I do if I miss the deadline?
If you miss the deadline, Saxo will automatically close your options position on your behalf. We recommend taking action before the deadline to ensure you have control over the closure of your position.